Mark Cuban has proven consistently during his entrepreneurial career that he knows a good investment when he sees one. Arguably the best within his portfolio was his purchase of the Dallas Mavericks.
Cuban bought the team in January of 2000. At the time of his purchase, Dallas was among the NBA's worst franchises, having failed to make the playoffs for a solid decade while going without a winning season from the 1989-90 campaign through the 1999-2000 season.
Since then, the Mavericks have become a consistently solid organization. They have developed international stars like Dirk Nowitzki and Luka Doncic and famously upset LeBron James' Heat in six games to win the 2011 NBA Finals.
And so, Cuban is set to cash in on his initial investment as he prepares to sell a majority stake in the Mavericks to Miriam Adelson.
The full terms of Cuban's deal with Adelson aren't yet known. Multiple reports indicate that the sale price will be in the range of $3.5 billion, but he is expected to retain some shares in the team, per Shams Charania of The Athletic.
Additionally, the deal's structure is one that Cuban is happy with, per NBA Insider Marc Stein. Why?
"It is poised to allow him — for the foreseeable future — to function with the same hands-on ownership style he has employed for nearly 24 years," Stein explained.
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So, Cuban's interest in selling the Mavericks in that uniquely structured deal is sensible. And when looking at the profit he is turning by doing so, it's hard to blame him for pulling the trigger on a deal now.
How much did Mark Cuban pay for the Mavericks?
Cuban initially paid $285 million to acquire the Mavericks in January of 2000. He is selling a majority stake in the team for roughly $3.5 billion, so that price is nearly 12.3 times what he paid.
Even when adjusting for inflation, Cuban makes out well in the deal. The $285 million he paid for the team in 2000 is worth about $519 million in today's money. Thus, the Mavericks are at least seven times as valuable now as they were when Cuban first purchased them.
Beyond that, it's worth noting that Cuban probably could've gotten more for the Mavericks. They came with an evaluated price tag of $4.5 billion, per Forbes' recent assessment of NBA teams.
So, why did he effectively surrender that extra billion as part of the sale? As Stein mentioned, "the unique structure of the agreement figures to hold far greater appeal to Cuban than making a deal at a higher franchise valuation."
The reason for that? Cuban can stay involved with the Mavericks and continue guiding the team in its pursuit of another NBA title.
So, long story short, Cuban gets to pad his wallet with $3.5 billion in spending money while still being able to work with his long-time NBA team. That's a rock-solid arrangement for him.
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Most expensive sports team sales of all time
Even though Cuban is planning to knock $1 billion off Dallas' evaluated price, it will still be among the most expensive professional sports team sales of all time.
The recent sale of the Washington Commanders to Josh Harris remains the most lucrative deal to date at a cool $6.05 billion. But among NBA teams, only the joint sale of the Suns and Mercury to Mat Ishbia for $4 billion will be more expensive than that of the Mavericks.
Below are the 10 most lucrative American sports teams sales in history.
- Washington Commanders (NFL): $6.05 billion
- Denver Broncos (NFL): $4.65 billion
- Phoenix Suns/Mercury (NBA/WNBA): $4 billion
- Dallas Mavericks (NBA): $3.5 billion (reported)
- New York Mets (MLB): $2.4 billion
- Brooklyn Nets (NBA): $2.35 billion
- Carolina Panthers (NFL): $2.275 billion
- Houston Rockets (NBA): $2.2 billion
- Los Angeles Dodgers (MLB): $2 billion
- Los Angeles Clippers (NBA): $2 billion
The Mavericks could have beaten the Suns in the category or even challenged the Broncos for No. 2 on this list had Cuban been looking purely to sell the team for a profit.
Instead, he will settle for the fourth-highest while remaining involved with the franchise's decision-making processes.